ARK Invest Acquires Stake in Musk's AI Startup, xAI: A New Step in AI Advancements
Summary:
ARK Invest, under Cathie Wood's leadership, has announced the procurement of a stake in Elon Musk's AI startup, xAI. The acquisition represents around 2% of ARK's fund holdings. This move is in line with ARK's recent AI-focused investments, including OpenAI and Anthropic. Musk's firm, launched in March 2023, currently boasts a valuation of approximately $24 billion following a successful Series B funding round. Musk has signaled plans to launch a new data center, dubbed the “Gigafactory of Compute,” by fall 2025.
Headed by experienced investor Cathie Wood, the investment management firm ARK Invest declared its intention to buy shares in xAI, an artificial intelligence (AI) startup helmed by Elon Musk. The 2% fund stake was made public to ARK's clients in an email on May 28, as Bloomberg reported, with ARK's Chief Futurist Brett Winton underscoring xAI's unique access to X's data resources and Musk's unrelenting progress-centric mentality. On May 10, X launched AI-curated audiences to aid advertisers in identification of specific audience groups.
The step echoes ARK's recent trend of dipping its toes into the realm of AI. It has been revealed that last month, ARK funneled 4% of its total holdings into OpenAI, which gave birth to ChatGPT, and invested 5% of its assets into Anthropic, the organization responsible for Claude AI model. By the close of this decade, Winton asserts, AI foundation models will have a net worth in the ballpark of several trillions.
Cathie Wood emerged as a bullish investor, contributing largely to Tesla during the 2021 COVID-19 crisis. Tesla is one amongst the numerous companies associated with Musk. Related: Multifaceted crypto scam featuring deepfake Elon Musk revealed in Hong Kong.
March 2023 marked the creation of Musk's latest endeavor, xAI, in a direct competition with AI moguls like Google, Microsoft, and OpenAI. A Series B funding round, held on May 26, yielded xAI $6 billion from renowned investors like Andreessen Horowitz, Sequoia Capital, Fidelity Management & Research Company, and others, including Prince Alwaleed bin Talal. This got the company's valuation to soar to a staggering $24 billion, an impressive feat given the short span of a little over a year since its inception. Musk has plans of establishing a new data center, labeled as the “Gigafactory of Compute,” geared towards training and perfecting the company’s Grok AI system, due to be operational by fall 2025.
Musk has consistently expressed his vision of AI and its future influence. During the VivaTech Paris 2024 conference, Musk criticized the prevailing models about not unabashedly seeking truth but inclining towards political correctness. He further inferred that AI would soon outperform humans in every field, rendering human employment redundant. Magazine: OpenAI’s revolutionary 'iPhone moment' outwits Google's AI; AI Eye reveals AI-related lies, pornography, and dating.
Published At
5/29/2024 12:02:26 PM
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